Richard S. and Benice F. Roberts - Page 2

                                        - 2 -                                         
               Respondent determined a deficiency in petitioners’ 1994                
          Federal income tax in the amount of $3,451.  This case was                  
          submitted fully stipulated, and the sole issue to be decided is             
          whether petitioners are taxable on any amount of Social Security            
          benefits received in 1994.  Petitioners resided in West Covina,             
          California, at the time they filed their petition.                          
               Petitioners’ 1994 Federal income tax return reflects                   
          adjusted gross income of $136,094.44.  Included in that amount is           
          $4,898.72, which is 85 percent of $5,763.20, the amount of Social           
          Security benefits received by petitioner Bernice F. Roberts.  In            
          addition, petitioner Richard S. Roberts (petitioner) received               
          Social Security benefits in 1994 in the amount of $13,151.                  
          Petitioners contend that no portion of this latter amount is                
          taxable because petitioner will never recoup his basis under the            
          85-percent taxability system.  Several of the stipulated                    
          exhibits, which respondent objected to as irrelevant and                    
          consisting of hearsay, attempt to demonstrate this fact with                
          historical calculations of petitioner’s contributions to the                
          Social Security system and his benefits received.  However, as              
          explained below, the calculation in petitioner’s exhibits of the            
          amounts of Social Security contributions made and recovered is              
          irrelevant under the statutory scheme for taxation of such                  
               Section 86 was enacted in 1983.  Social Security Amendments            
          of 1983, Pub. L. 98-21, sec. 121(a), 97 Stat. 80.  This provision           

Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011